Which of the following is a cost associated with free trade?

Question

A.
It will increase the availability of diverse products.
B.
It will increase global trade.
C.
Companies may move production to other countries.
D.
Consumers will pay lower prices.

Please select the best answer from the choices provided
A
B
C
D

Answer 1

The best answer is C. Companies may move production to other countries.

This choice highlights a cost associated with free trade, as it can lead to job losses in domestic industries when companies relocate production to take advantage of lower labor costs or other economic factors in other countries.